Caixa Econômica Federal, one of the biggest brazilian banks launches fund to invest in infrastructure without income tax for individuals

The Caixa Econômica Federal will launch the first Brazilian fund designed to invest in infrastructure bonds. The fund called Investimento em Crédito Privado Renda Fixa Longo Prazo Desenvolvimento Brasil I(something like Private Investment in Fixed Income Credit Long-Term Development Brazil I), will have differential taxation, which exempts the individual investor’s income tax and has a rate of 15% for corporations.

According to the bank, the proceeds will be invested in the construction and improvement of highways, ports, railways, airports, telecommunications, sanitation and energy in Brazil. The product is expected to raise about R$ 500 million.

To Jorge Hereda, president of CAIXA, the launch is in line with the bank’s strategy to offer attractive conditions for investments in investment funds. According to the Vice President of Asset Management, Marcos Vasconcelos, the structure of the debentures with the issuers is already at an advanced stage, with projects in logistics,offshorecompany, sanitation and energy.

“The fund is attractive to companies that operate in the infrastructure sector, to provide resources at competitive costs, and still attractive to investors because it is a worthwhile investment and low-risk bonds backed by long-term and low risk of default.

For more info: http://economia.ig.com.br/financas/investimentos/2012-06-22/caixa-lanca-fundo-de-investimento-em-infraestrutura-sem-ir-para-pessoa-fisica.html

Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.